Monopolistic Competition Without Apology
52 Pages Posted: 16 Jun 2016
Date Written: June 14, 2016
We provide a selective survey of what has been accomplished under the heading of monopolistic competition in industrial organization and other economic fields. Among other things, we argue that monopolistic competition is a market structure in its own right, which encompasses a much broader set-up than the celebrated constant elasticity of substitution (CES) model. Although oligopolistic and monopolistic competition compete for adherents within the economics profession, we show that this dichotomy is, to a large extend, unwarranted.
Keywords: monopolistic competition, oligopoly, product differentiation, the negligibility hypothesis
JEL Classification: D43, L11, L13
Suggested Citation: Suggested Citation